NCLT Clears Vedanta’s Subsidiary Restructuring Plan Involving TSPL

said the National Company Law Tribunal (NCLT), Mumbai Bench has sanctioned a Scheme of Arrangement involving key subsidiaries, including Talwandi Sabo Power Limited (TSPL), Vedanta Aluminium Metal Limited, Malco Energy Limited, Vedanta Base Metals Limited, and Vedanta Iron and Steel Limited. The NCLT order was delivered on January 9, 2026, providing the legal approval needed to proceed with the proposed internal reorganisation. The scheme—filed under Sections 230–232 of the Companies Act, 2013—seeks to reorganise Vedanta’s diversified operations (aluminium, power, iron and steel, and base metals) into separate entities to enable sharper management focus and operational efficiency, while creating clearer investment propositions for stakeholders. As part of the approved structure, TSPL (a wholly owned subsidiary) will take over the “Merchant Power Undertaking” of the demerged company, with associated assets, liabilities, and employee obligations (including gratuity, pension and provident fund benefits) transferring on a going-concern basis. Creditor support was near-unanimous: the scheme was approved by 100% of TSPL’s secured creditors and 99.99% of unsecured creditors in meetings held in November 2025. Vedanta also stated the scheme aligns with applicable accounting standards and relevant provisions of the Income Tax Act, 1961, with regulatory observations addressed ahead of final sanction. Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.